n M , ., . Hong Kong UK economy space Colomfajjy | Cut-price Are the labour laws Clearpolicies badly Satellite launch marker^^0^^ainst drugs I ripeforchange? managed jpL* Hlk/f takes off and political terror w£9£mKHHH Page 3 Pago 7 Page 14 Pag* 4 — ' . j Europe's Business Newspaper TUESDAY FEBRUARY 2 1993 Israel to let 1 00 Brussels president denounces job-poaching and calls for G7 meeting Key index Palestinians back from Lebanon Delors calls Israel is to let about 100 of the 415 Palestinians it deported to Lebanon back into the country and will shorten the terms of exile of the others, Israeli television reported, adding that prime minister Yitzhak Rabin worked out the details for social with US ambassador William Harrop. Palestinian negotiators have refused to resume peace talks with Israel until the deportees were brought back. By Michael Prowse Earlier report. Page 3 In Washington Khmer Rouge attacked: Cambodian troops US manufacturing industry is attacked Khmer Rouge guerrillas on several fronts policy to poised for its fastest growth In in the worst fighting for a year. Page 16 four years, a sharp increase in Japanese confidence shaken: Japanese the Purchasing Managers’ Index by business confidence has fallen sharply over the indicated yesterday. Boosted the past three months, according to a survey of senior an Increase in new orders, from per cent in executives. Page 3 help jobless index rose 55.4 December to 58 last month, the Meetings banned In Kinshasa highest level since July 1988. gatherings were Public By Lionel Barber in Brussels dumping duties on EC steel This was higher than financial banned in Zaire’s capital, exporters and yesterday’s deci- markets expected and, taken Kinshasa after last MR JACQUES DELORS, sion to restrict EC bids on federal with other recent strong data, week’s riots in which president of the European Com- public procurement contracts. could lead economists to revise at least people died. 65 mission, yesterday denounced At yesterday's opening session upwards their estimates of US French soldiers have job-poaching in the European of EC foreign ministers, France growth this year. been escorting foreigners Community and led calls for a followed Mr Delors and other EC The index has been above the out of the country, relaunch of EC social policy to 50 per cent level that indicates an President but Mobutu help tackle the unemployment expanding manufacturing sector Sese Seko (left) is refus- Page 16 crisis In Europe. since last October, when it regis- ing to let Belgium As EC foreign ministers headed tered 50.7 per cent. EC rejects 115 ‘bullying’ on send troops to help by France warned that monetary The Purchasing Managers’ the evacuation. Page 3 award of utility contracts Instability and competitive deval- Index, based on a monthly ques- Galileo takes off: Two of the world’s biggest uations were undermining the tionnaire to over 300 industrial airline computer reservation systems merged EC's single market, Mr Delors companies, is regarded as a reli- to form Galileo International, which is estimated criticised “social dumping” members urging a “relaunch" of able barometer of trends in man- to be worth Jl-5bn. Shareholders include British whereby certain countries were EC social policy to defend work- ufacturing. Airways, United Airlines and Swissair. Page 17 downgrading workers' rights to ers’ rights and guard against In a separate report yesterday, attract foreign investment “social dumping”. the Commerce Department said Cnuti isolated: Italian minister Giuliano prime Mr Delors' remarks at a meet- Mr Roland Dumas, French for- construction spending rose 6.2 Amato, struggling to preserve the stability of ing of EC foreign ministers in eign minister, said employment per cent last year, the biggest his four-party coalition government, has distanced Brussels were widely seen as an could not be created by countries Last minute points: Jacques Delors (left) confers with French foreign minister Roland Dumas before the increase in six years. However, himself from the difficulties Socialist leader of attack on the UK. He combined outbidding each other for Invest- EC foreign ministers council in Brussels yesterday, where both men denounced job poaching in the EC spending was down 0.4 per cent CraxL and former close colleague Bettino Page 16 them with a call for an early ment. He attacked the recent in December and figures for Octo- Now chief for American Express: Troubled meeting of the Group of Seven decision by Hoover, the US multi- economic convergence, social decision to promote growth by providing for greater consulta- ber and November were also US travel and financial services group American industrialised countries to co- national, to relocate from Dijon cohesion and solidarity among floating sterling outside the tion between management and revised down. Express appointed Richard Furlaud, 68, a director ordinate growth* possibly in in France to Cambuslang in Scot- EC members. European exchange rate mecha- workers. Mr Robert Bretz, a' spokesman since 1972, non-executive chairman. He replaces April. “We face a world economic land as a “serious incident”. EC diplomats said the refer- nism and progressively cutting Although the US has yet to for US purchasing managers, said James Robinson, who resigned at the weekend. crisis and we need a world eco- Mrs Elisabeth Gulgou, French ence reflected French concern UK interest rates. commit itself to a summit, there low levels of corporate invento- Page 17 nomic solution,” he said. minister responsible for Euro- about the impact on its competi- Mr Dumas raised the stakes by Is talk in Brussels among EC and ries and rising order, books indi- The Clinton administration has pean affairs, appealed for “fair tive position of maintaining a urging the EC to accelerate work US officials of a potential “grand cated the economy would con- Krajlna worsen: Fighting between dashes expressed interest in closer eco- competition” among EC member strong franc but described it directives to be adopted under deal” in the spring In which a cut tinue to strengthen in coming Serbs and Croats intensified Krajina, the Serb in nomy policy co-ordination witMn states. She drew attention to the as an rttack on the t?K for opting the social protocol in the Treaty, in Goman interest rates could be months. enclave in Croatia, and there were fears that the G7, but US relations with the the 1986 Single European Act pro- out of the Maastricht treaty’s while Mrs Guigou called for adop- co-ordinated with a Gatt agree- If the purchasing index the "dashes could spread. Page 2 EC have become strained after viding for gngtaTnahTff, non-infla- sorfaUtairotoeoL <It waariftjso tion of the 48-hour maximum ment to revive confidence In the remained above about 53 per cent ' - - week's a-directive world -economy. tin. average for . last year i titanium stake: Tioxide Group, last imposition of anti- tionary growth, a high degree of impllci* Baftaih-’s Hrorking week and of real gross urn rtitnrfrift subsidiary, is paying $28Qm growth domestic product likely to r cent stake in a 100,000 tonne a year was exceed 3 tanium pigment plant in Lake Charles, per ceht this year, he said. Yesterday's figures follow Page 17; Lex, Page 16 Speculators hit ERM Emu timetable attacked reports last week of a 9.1 per cent «axu natt city: Police fired teargas and rubber S increase in new orders for dura- bullets to disperse rock-throwing black Johannes- THE French franc and Danish ing, to a low of FFr3.3950 against ble goods between November and taxi drivers who blockaded the city centre burg krone fell victim to a sharp burst the D-Mark, while the Danish December and economic growth In protest at alleged harassment by traffic police. as ‘much too ambitious’ of speculative selling yesterday krone was seen as low as at an annual rate of 3£ per emit Omlnbus UK outlook: The trading outlook after the 10 per. cent devaluation DKtfL8750 against the D-Mark, in the fourth quarter. Sales of David for UK companies remains “ominous", according By Marsh in Oxford Speaking at Nuffield College, debt and deficit targets laid of the Irish punt within the Euro- near to its floor of DKrfL9016. existing homes at the end of last credit insurance group Trade Indemnity. Page 6 Oxford, he said Germany and its down in the treaty. This was pean exchange rate mechanism, The franc later closed at year were reported at. their high- A LEADING member of the European Community partners because “the Maastricht treaty writes James Blitz in London. FFr3.380 against the D-Mark, est level in 13 years. Bridgestone promotion: Japan's largest Bundesbank’s policymaking was never subjected to a test of Both currencies later recov- while the krone closed at Most components of the pur- Yoichiro tyremaker, Bridgestone, promoted KaizakL, council last night criticised as how it would be fitted in to ered, although money market DKr3.8501 as selling pressure chasing i ndev sent encouraging Irish attack on ‘selective’ p chief executive of its US operations, to group “much too ambitious” the time- medium-term cyclical develop- interest rates in both France and abated. The Irish punt climbed to signals. The index for new orders ERM policy ...... Page 2 president Page 19 table for European economic and ments”. Denmark remained at very high the top of its new ERM band* as rose from 64.4 per cent in Decem- defended Moira's Italian purchase: Europe's monetary union. EMS Page 2 Although long-term German levels. The French franc fell the market accepted the devalua- ber to 67.2 per cent, the highest Helmut Jochlmsen, sanitaryware market became more concentrated Mr presi- Currencies Page 32 intoest rates were not particu- sharply in the first hours of trad- tion.